On August 9, 2024, House Bill 3773 amending the Illinois Human Rights Act was signed by the Governor. The bill adds restrictions related to the use of predictive data analysis for employment and credit analysis.

The bill provides that an employer that uses predictive data analytics in its employment decisions may not consider an applicant's race or zip code when used as a proxy for race to reject an applicant in the context of recruiting, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure or terms, privileges, or conditions of employment.

Additionally, the bill provides that:

• a person or entity that relies either partially or fully on predictive data analytics to determine a consumer's creditworthiness may not allow the use of information about the consumer that assigns specific risk factors to the consumer's race or zip code resulting in rejection of credit or other adverse credit-related action to a consumer;
• a person or entity that uses predictive data analytics to determine the creditworthiness of more than 50 consumers in a calendar year who are Illinois residents shall devise procedures to ensure that it does not consider information that assigns specific risk factors to a consumer's race or zip code when rejecting or taking other adverse action on a consumer's application for credit; and
• a violation of the above provisions is considered an unlawful practice within the meaning of the Illinois Human Rights Act.

Entry into effect

The bill provides for its effective date as January 1, 2026.

You can read the bill here and view its history here.